Tama Home (1419) Q2 2024 earnings summary

Executive summary

• H1 FY2024 net sales fell 10.0% YoY to ¥112,757 million; operating profit declined 55.5% to ¥3,007 million and profit attributable to owners of parent fell 58.1% to ¥1,903 million.

• Orders remained firm across custom homes, detached-home subdivisions and remodeling, while fewer custom-home handovers weighed on revenue and profit.

• Full-year guidance was unchanged; management expected the annual plan to be achieved, with results typically weighted toward Q4.

Financial highlights

• Gross profit was ¥26,523 million versus ¥29,396 million YoY; gross margin was 23.5%, unchanged, while SG&A rose to ¥23,515 million from ¥22,632 million.

• Ordinary profit was ¥3,186 million versus ¥6,930 million; profit before income taxes was ¥3,067 million versus ¥6,856 million.

• Net income was ¥1,911 million versus ¥4,556 million; profit attributable to owners of parent was ¥1,903 million versus ¥4,544 million.

• Operating margin was 2.7% versus 5.4%, ordinary margin 2.8% versus 5.5%, and parent-attributable profit margin 1.7% versus 3.6%.

Outlook and guidance

• FY ending May 31, 2024 guidance: net sales ¥257,000 million, up 0.4%; operating profit ¥14,100 million, up 6.3%.

• FY ordinary profit guidance is ¥14,100 million, up 4.6%; profit attributable to owners of parent is ¥9,200 million, up 5.6%.

• H1 progress against full-year plans: revenue 43.9%, operating income 21.3%, ordinary income 22.6% and parent-attributable profit 20.7%.

• FY basic EPS guidance is ¥317.37; the forecast was not revised.